PRSI deduction from private occupational pension drawdowns.

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Roro999

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Just retiring soon and estimating net income. Does PRSI get deducted from gross monthly pension income ?
 
There is no Prsi charged on occupational pensions or annuities. Prsi M class applies and this is free. ARF drawdowns have a 4% Prsi deduction until you reach age 66.
 
Thanks bstop. So we are both taking 25% tax free from our occupational pensions and investing remainder in ARF's for which any drawdowns till age 66 will be subject to 4% PRSI. Class M doesn't apply to us.
Have I understood your answer correctly ?
 
Roro999 said:
Thanks bstop. So we are both taking 25% tax free from our occupational pensions and investing remainder in ARF's for which any drawdowns till age 66 will be subject to 4% PRSI. Class M doesn't apply to us.
Have I understood your answer correctly ?
Click to expand...
Yes that's correct.
The Prsi on ARFs is S class. The S class contributions are useful if you need extra Prsi contributions in order to qualify for the contributory pension.
 
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